Profit Sharing Plan
Help Grainger Meet Its Performance Targets & Contribute to Your Financial Goals
The Profit Sharing Plan is a key feature of Grainger’s retirement benefits because it enables team members to share in the Company’s success and provides a valuable way to build up savings.
It comes with a:
Profit Sharing feature where Grainger shares profits with team members when you help the Company meet its business performance targets.
401(k) feature with a Company contribution.
Special Note During the Coronavirus COVID-19 Outbreak
Rest assured that operations continue as usual for your plan at Vanguard. For information regarding the global market volatility driven by COVID-19, please visit Vanguard’s
market volatility page or
sign up to attend a free webinar, available every Monday and Friday through May 29, 2020.
Understanding Vanguard’s investment philosophy can help you ride out the ups and downs of the market and reach your financial goals.
To help team members facing financial hardship, we are making temporary and permanent changes to our Retirement Plan design. For more information, refer to the documents listed below (access to Grainger's network is required):
- Frequently Asked Questions (FAQs):
Who is Eligible
Profit Sharing: You are eligible to participate if you are at least age 18, have worked 1,000 hours and are employed as of December 31.
401(k): You are eligible to participate on the first day you are employed with the Company if you are at least age 18.
How it Works: Profit Sharing Feature
The Company sets a performance target each year based on the return on invested capital (ROIC), together with the Company’s pricing execution strategy.
The Company Profit Sharing Plan contribution is split in two ways:
Part 1: The Company will automatically contribute 3% of your eligible compensation (salary, overtime, commission, bonuses) as a contribution into your plan account each pay period. This contribution will be vested immediately and does not require you to make elective pre-tax 401(k) contributions. Upon hire, you will begin to see the Company 3% contribution in your Vanguard account after each pay period.
Part 2: The remainder of the shared profits will be an annual variable Company contribution that goes into your Vanguard plan account in March of the following year. The annual Company contribution is subject to a five-year graded vesting schedule, as outlined below.
| Year(s) of Service ||Percent Vested |
How it Works: 401(k) Plan
When you enroll in the 401(k) Plan, you’ll need to indicate the percentage of your pay you want to contribute and how you want to invest your money among the investment choices available.
- You can contribute from 1% to 75% of your pay (in whole percentages), up to $19,500 in 2020, on a pre-tax basis. Your contributions are 100% vested.
- Grainger will make an annual contribution equal to 3% of your eligible pay into your plan account. This contribution will be 100% vested.
- If you’re age 50 or over, you may also contribute up to $6,500 in catch-up contributions.
Rollover from a Previous Employer’s Plan
You can request a direct rollover of all or part of your distribution from your previous employer’s plan. To make a direct rollover, you must be a team member who is eligible to participate in the Profit Sharing Plan. By making a direct rollover, you defer tax liability on your distribution, and you can take advantage of the investments offered under the plan.
Keep in mind that the 401(k) Plan does not accept rollovers from personal individual retirement accounts (IRAs).